Boston Multifamily Report – February 2025
Beantown didn't go through the construction boom seen by many other cities, according to Yardi Matrix.
Boston proved its resilience again in 2024, with relatively limited supply growth helping occupancy and rent movement. Occupancy in stabilized properties, at 96.5 percent as of November, was up 10 basis points year-over-year. Rents contracted on a trailing three-month basis through December, by 0.7 percent, but remained in line with seasonal trends. Year-over-year, average advertised asking rents rose 1.2 percent, to $2,836 in metro Boston, double the 0.6 percent U.S. figure.
Employment growth picked up in the second half of 2024, marking a 0.9 percent expansion as of November, but was still below the 1.3 percent national average. Four sectors, including manufacturing and information, lost a combined 8,500 net jobs. Education and health services led gains, adding 18,200 net positions, followed by leisure and hospitality, with 9,700 jobs. Meanwhile, unemployment rose to 3.7 percent as of November, according to preliminary data from the Bureau of Labor Statistics, but outperformed the U.S. (4.2 percent) and Massachusetts (4.0 percent).
Supply growth totaled 7,083 units in 2024. The volume was close to the previous two years but still the lowest recorded over the last decade. Another 17,752 units were under construction going into 2025. Meanwhile, investment hit $2.2 billion, marking metro Boston’s lowest total since 2020. Meanwhile, the price per unit declined 8.7 percent year-over-year, to $393,195.
